What are the different types of corporations?

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Among the different types of corporations are publicly held and closely held corporations, C and S corporations, professional corporations and nonprofit corporations. There are several advantages of a business being a corporation, as opposed to being a single proprietorship or partnership. These advantages include tax shelters, diffused accountability and liabilities, the ability to attract investors and raise capital, notes Companies Incorporated.

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A corporation, such as the following examples, is a separate legal entity and a detached accountability. It has its own rights and privileges that is separate from those of its shareholders. Corporations are often used to conduct business, as stated on the U.S. Legal website.

Publicly held corporation

As its name implies, a publicly held corporation is a type of corporation wherein shares of its ownership is traded on the stock market.

Closely held corporation

A closely held corporation is a private corporation with only a limited number of owners or stockholders. This type of corporation is not traded on the stock market.

C corporation

C corporations are types of corporations that can have unlimited number of shareholders, which may include foreign citizens.

S corporation

Unlike C corporations, S corporations can have no more than 100 shareholders who should be U.S. citizens or residents. Shareholders should also be natural persons, trusts, estates or tax-exempt corporations.

Professional corporation

A professional corporation is made up of professionals who are licensed to practice a particular profession such as doctors, lawyers or accountants.

Nonprofit corporation

Nonprofit corporations are essentially organizations that usually serve charitable, artistic and scientific purposes, rather than to make profit.